Binance Discussing Acclerated BNB Burn

Share Article
In Brief
  • Binance is discussing an accelerated burn program.

  • This could be a scheme to catapult BNB into the top 5 cryptocurrencies.

  • The move comes just following a $68 million Binance Coin burn.

  • promo

    Free Cloud Mining Providers to Mine Bitcoin in 2021

The Trust Project is an international consortium of news organizations building standards of transparency.

Binance CEO CZ tweeted that the company is considering an accelerated burn. Such a program would make the Binance token (BNB) even scarcer than before. It is currently the #9 token by market cap.

Sponsored



Sponsored

On Dec. 20, 2020, CZ of the giant exchange Binance announced that the company was considering doing an accelerated burn of BNB coins. This move will likely increase the value of each BNB while maintaining the market cap. 

Sponsored



Sponsored

And as ElijahBoom responded on Twitter, this could be a move to scoot BNB up from its place at #9. After all, with a predicted increase in token price, a lot of buying power could enter the market and further increase the BNB market cap.

Burn baby burn

On Oct. 17, 2020, Binance announced a major token burn. This, the 13th such burn, destroyed over 2 million BNB tokens, an equivalent of about $68 million. At the time, this was the largest burn in terms of fiat value. 

In recent months, BNB has struggled to stay afloat near its all time highs. With the rise in DeFi and other side chains to compete with Binance Chain, the company does have to keep things interesting to remain a (if not the) market leader. This could be a move to keep attention on the utility token.

BNB 24 Hour Chart: TradingView

As of writing, the price of Binance Coin is up about $4 over a 24 hour period. If this tweet was meant to increase the price of BNB, then it worked. 

Regular Regulation

In recent weeks, Binance has been preparing for regulation across the globe. The company publicly touted they were reading their services for complete compliance with regulations in France

Likewise, Binance has cracked down on US accounts that were accessing the main Binance.com site (rather than the regulated Binance.us site) since 2019. This has been seen as a move to make Binance universally regulated.

Also in a way to appeal to regulators, Binance recently joined the Blockchain for Europe Association. This group aims to help crypto companies play nice with European financial institutions. 


Aside from dodging legal troubles, this could create some opportunities for the company. While Binance is valued around $1 billion, it could grow larger. Recently, Coinbase filed for its IPO and was found to be worth near $28 billion. Perhaps pleasing regulators (as Coinbase did before its IPO paperwork) is a step in the process of going public. That could be a multi-billion dollar venture.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Sponsored
Share Article

Harry Leeds is a writer, editor, and journalist who spent much time in the former USSR covering food, cryptocurrencies, and healthcare. He also translates poetry and edits the literary magazine mumbermag.me.

Follow Author

Crypto predictions with the Best Telegram Signal with +70% accuracy!

Join now

Free Cloud Mining Providers to Mine Bitcoin in 2021

Go

How To Mine Cryptocurrency: Beginner’s Guide

Let's Go